While we remain longer-term bullish, and it is wonderful that the S&P has recorded new highs, market breadth has yet to confirm the S&Ps strength. This leaves us with a tactically cautious view, and a strong preference for buying only when the market is oversold. We are now overbought, so we prefer to adopt a “wait and see” attitude. Continue to “water the flowers and pull the weeds”, of course, but resist the temptation to get overly bullish while we are overbought.
Monthly MOTR Checkup Video (MMC): “Market Still Not Ready For ‘Prime’ Time Yet.”
May 25th, 2024
Related Market Insights
Some of Our Latest Commentary
Charting My Interruption (CMI): “MOTR Dashboard ‘Sneak Peek’: The Mo Crash.”
Highlights Momentum leaders sharply lagged today despite a rising market, producing an outsized momentum 'crash' where “good guys” fall and
Weekly MOTR Report (WMR): “A ‘Good’ Overbought Condition?”
Highlights The tactical plan of buying/covering into oversold support worked out ahead of the "surprise" cease fire. However, selling/shorting the
Weekly Risk Gauge (WRG): “Semis Are First to Emerge.”
Highlights The Short-Term Gauge has improved from 'Risk Off' to 'Mixed', so we are staying patient, sizing positions smaller, and
Charting My Interruption (CMI): “Into the Heart of Resistance.”
Highlights The market's sharp rally has run directly into meaningful, overlapping resistance. If this is indeed another 'TACO' trade, our
Weekly MOTR Report (WMR): “Some Good Charts, But Poor Context.”
Highlights Although there are many good charts, there are many more bad ones, reminding us that the market regime contains
Weekly Risk Gauge (WRG): “Working Off Oversold.”
Highlights The selloff paused last week and the market posted gains, causing the Long-Term Gauge to flip back to 'Risk